The U.S. equity indices ended mostly higher yesterday following strong manufacturing data reports from the world’s two largest economies – U.S. and China for the month of May 2014. The Institute for Supply management (ISM) reported that the purchasing managers index (PMI) – a key monthly gauge for the U.S. manufacturing sector, came in at 55.4, up from the earlier reading of 54.9 in April 2014. The Chinese manufacturing index edged up to 50.8 in May from 50.4 in April.
Today we have shortlisted 10 U.S. manufacturing stocks that are likely to register strong growth in 2014. We note that these stocks have recorded share price gains yesterday following the announcement of U.S. manufacturing data for the month of May 2014. Moreover, these stocks have registered strong growth in sales and earnings during 2013 and are expected to continue the growth in 2014. Meanwhile, these stock are trading at relatively low 1-year forward PE multiple compared to industry average and provide strong return on equity. A majority of these stocks have recorded gains during the past three months with daily average trading volumes of above 100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change (3-Month) |
Price Change (1-day) |
Sales Growth |
Sales Growth |
EPS Growth |
EPS Growth |
1Yr forward PE Ratio |
Return on Equity |
|
Graco Inc |
NYSE |
GGG |
4.5 |
73.50 |
248,439 |
-5.0% |
0.7% |
9.0% |
7.6% |
39.3% |
8.4% |
20.2 |
36.4% |
|
Alliance Fiber Optic Products Inc |
NASDAQ |
AFOP |
0.4 |
20.75 |
759,655 |
71.9% |
2.3% |
63.2% |
34.7% |
92.7% |
33.3% |
15.7 |
29.7% |
|
AAON Inc |
NASDAQ |
AAON |
1.2 |
31.44 |
128,747 |
8.2% |
0.8% |
5.9% |
11.8% |
104.9% |
23.8% |
25.2 |
25.4% |
|
Methode Electronics Inc |
NYSE |
MEI |
1.2 |
31.33 |
441,419 |
-6.5% |
0.6% |
11.8% |
43.6% |
395.5% |
120.4% |
17.6 |
18.1% |
|
The Manitowoc Co |
NYSE |
MTW |
3.7 |
27.48 |
2,256,389 |
-9.8% |
1.6% |
3.4% |
2.9% |
39.8% |
12.6% |
16.8 |
17.6% |
|
Eagle Materials Inc |
NYSE |
EXP |
4.4 |
87.37 |
713,934 |
-0.7% |
0.5% |
29.8% |
24.9% |
195.2% |
57.0% |
22.4 |
16.3% |
|
Wolverine World Wide Inc |
NYSE |
WWW |
2.6 |
26.06 |
948,973 |
0.0% |
0.7% |
64.0% |
3.7% |
21.0% |
12.2% |
16.2 |
13.8% |
|
Belden Inc |
NYSE |
BDC |
3.2 |
73.01 |
273,663 |
3.2% |
1.4% |
12.4% |
12.7% |
149.0% |
14.1% |
17.3 |
12.8% |
|
Greif Inc |
NYSE |
GEF |
2.7 |
55.47 |
121,248 |
10.2% |
1.6% |
2.0% |
3.0% |
19.8% |
8.8% |
18.5 |
12.4% |
|
Terex Corp |
NYSE |
TEX |
4.3 |
39.10 |
1,704,193 |
-11.2% |
1.7% |
1.5% |
6.5% |
168.6% |
20.3% |
14.6 |
11.5% |
Source: Bloomberg
Company Description:
Graco Inc (NYSE: GGG)
Graco Inc. supplies technology for the management of fluids in both industrial and commercial applications. The company designs, manufactures, and markets systems to move, measure, control, dispense, and apply fluid materials. Graco’s products are used for applying paints and coatings, high-pressure cleaning of equipment, and lubricating and maintaining vehicles and other equipment.
Alliance Fiber Optic Products Inc (NASDAQ: AFOP)
Alliance Fiber Optic Products, Inc. designs, manufactures, and markets a variety of high performance fiber optic components and modular solutions for leading and emerging communications equipment manufacturers. The company offers a broad product line of passive optical components including interconnect systems and couplers and splitters.
AAON Inc (NASDAQ: AAON)
AAON, Inc. designs, manufactures, and markets commercial rooftop air-conditioning, heating and heat recovery equipment, and air-conditioning coils. The company’s products serve the commercial and industrial new construction and replacement markets.
Methode Electronics Inc (NYSE: MEI)
Methode Electronics, Inc. manufactures component devices worldwide. The company’s products are sold to original equipment manufacturers of information processing and networking equipment, voice and data communications systems, consumer electronics, automobiles, aerospace vehicles, and industrial equipment.
The Manitowoc Co Inc (NYSE: MTW)
The Manitowoc Company, Inc. is a diversified industrial manufacturer of cranes and related products and foodservice equipment. The company’s products include lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks as well as ice making machines, refrigerators, and freezers.
Eagle Materials Inc (NYSE: EXP)
Eagle Materials Inc. manufactures and distributes cement, gypsum wallboard, recycled paperboard, and concrete and aggregates. The company’s products are used in the construction of homes, commercial and industrial buildings, and governmental buildings across the United States.
Wolverine World Wide Inc (NYSE: WWW)
Wolverine World Wide, Inc. manufactures and markets branded footwear and performance leathers. The company’s products include shoes, slippers, occupational and safety footwear, and performance outdoor footwear, among others.
Belden Inc (NYSE: BDC)
Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products. The company produces and sells a portfolio of cable, connectivity, and networking products into a variety of end markets, including industrial, enterprise, broadcast, and consumer electronics.
Greif Inc (NYSE: GEF)
Greif Inc. manufactures and markets industrial packaging products and services. The company provides steel, plastic, fiber, corrugated and multiwall containers. Greif also produces containerboard and has operations nationwide.
Terex Corp (NYSE: TEX)
Terex Corporation is a diversified global manufacturer operating in four business segments: aerial work platforms; construction; cranes; and materials processing. Terex manufactures a broad range of equipment for use in various industries including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.
